According to court documents, between 2010 and 2012, Khudoy and Clint D. Bonderer, 38, of Stockton, submitted income tax returns to the IRS for others that contained false information about the taxpayers’ income, filing status, and address, and fraudulently claimed credits that the taxpayers were not entitled to receive. Bonderer and Khudoy submitted 842 fraudulent tax returns, requesting more than $600,000 in refunds in the names of other people. In most cases, they kept the refunds for themselves. Khudoy pleaded guilty on April 13, 2016.

On March 10, 2016, Bonderer was sentenced to three years in prison for conspiring to submit false claims.

This case was the product of an investigation by the Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorney Matthew G. Morris prosecuted the case.